Renewable Energy is

a Strategic Option for KSA

Eng. Hamed A. Al Saggaf

IPP & RE Sector Executive Director
Saudi Electricity Company

1
 Content

Demand Challenges

Renewable RE is a Strategic Option

Energy is a
Strategic SEC Initiatives
Option for
KSA RE Challenges

KSA Initiatives of RE
2
 Demand Challenges
140
GW

122,6
119,0
120 115,7
112,0
105,7
99,7
100 94,0
88,7
83,7
79,0
80 74,5
70,3
66,3
62,3 62,5
59,0
60 53,9
56,5
51,9
48,4
45,7
41,2
38,0
40 35,0
29,9 31,2
26,3 27,8
23,6 23,9
21,7
20

0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
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 RE is a strategic option
Production and consumption of oil in Saudi Arabia

~16
Current technical production limits Oil Production
14 11.6
10.9 11.1 11.5
12 10.7 ~12
10.5 10.3 10.7 10.1
9.7
Million Barrel/Day

11.5
10
8
Oil Consumption
6
4 3.1
2
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

2013 2045
Production Year
Oil consumption Available for Export

4
 RE is a strategic option
The average of levelized electricity cost

Generating Types – Subsidized Fuel Price Generating Types – Market Fuel Price
1200 1200
1062 1062
1000 1000
SAR/MWh

SAR/MWh
800 706 800
751 655 706
751
600 600
354 340 379
400 314 400 312 314
354 340 379
392 275 392 275
354
174
200 85 92
108
213 232 200 261
218 253
213 232
171 158 119 171 158
69 74 91
0 0
CCGT

Steam

ISCC
SCGT

CSP

Nuclear
Wind

PV Storage
PV

Geo-Thermal

CCGT

Steam

ISCC
SCGT

Wind
CSP

Nuclear
PV

PV Storage
Geo-Thermal
5
 RE is a strategic option
Comparison of Fuel Prices
$/Barrel
70
60
50
40
30
20
10
0
Diesel ($/bbl) Crude oil ($/bbl) Heavy Oil ($/bbl) Gas ($/MMBTU)

PV Breakeven SEC new Price International

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 RE is a strategic option
RE VS Annual peak load
Monthly average for solar energy SEC Contribution during peak load

8000 70
62,3 61,4
7000
60 56,6 57,8
54,4 53,7
Watt hour/m2/day

6000
50 46,7
5000 41,0 42,4

40 36,6
4000 34,3 35,2

3000 30

2000 20

1000
10

0
Apr-15
Feb-15

Jul-15
Jun-15

Sep-15

Nov-15
Oct-15
May-15
Jan-15

Dec-15
Mar-15

Aug-15

Feb-15

Apr-15

Jul-15
Jun-15

Sep-15

Nov-15
Oct-15
May-15
Jan-15

Dec-15
Mar-15

Aug-15
25 stations in KSA for solar radiation monitoring Load GW
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 RE is a strategic option
KSA Resources of RE

Wind Speed (m/second) Solar Radiation

• Wind speed at high potential areas
8.5 m second/year
• Expected generation 400 – 700 kWh/m2
• KSA Wind energy potentials 100–175 TWh/year
• Average sunrise 8.4 to 9.2 hour/day
• KSA receives highest rate of solar radiations
2080 to 2450 kWh/m2/year
• Solar PV potentials 732-953 TWh/year
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 SEC Initiatives
Selected sites for SEC renewable energy initiatives
Waad Al Shamal

Al Guryat

Al Aqaba Al Jouf
Rafha

Duba
Madinah
Hurimla

Umloj Mahd Al Dhahab

Layla Al Aflag

Joba

Al Laith

Farasan Najran
Sharora

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 SEC Initiatives
Drivers for SEC initiatives

High cost of KSA has the natural

generation in resources of sun and
selected areas wind

high cost of diesel fuel

transportation to High cost of diesel
remote areas consumption

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 SEC Initiatives
Current status on RE (SEC):

Operational Projects Capacity (KW)

Farasan Solar PV
500
Project
2 Rooftop on 2
60
Schools
Ongoing Projects: Capacity (MW)
SEC Vision for RE: Duba CSP 50
Explore RE Resources in the
Wa’ad Al-Shamal CSP 50
Kingdom to save liquid fuel, reduce
emissions, protect environment and Solar PV Layla Aflaj 10 – 50
improve public health. Huraymila Wind 2.7

Capacity Expected
Initiated Projects
(MW) Operation
Al Jouf IPP PV 80
Rafha IPP PV 20 End by 2017
Umluj IPP Wind 50

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 RE Challenges
Subsidy on Fuel

Technological RE Impacts on
Aspects Grid Stability

Harsh Climate Operational Practices

& Reserve
Management

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KSA Initiatives of RE

Adding 9.5 GW of RE
to National Energy Mix

Adding 3.45 GW of RE
to National Energy Mix
 Sector Structure and Commercial Model:
Best Practices Based on our benchmarks

Ministry of energy to control the Integrated Resource Planning process and

Strong Policy Making
support its implementation

Integrated
IPP procurement for both conventional and Renewable Energy to exist within
conventional and RE
one entity – Principal Buyer
procurement

Clarity of A procurement model with well-defined evaluation and qualification criteria,

procurement process transparent and eliminate conflict of interest.

Remove private sector hurdles by providing land, conducting geotechnical,

De-Risking Private
environmental and interconnection studies. SLA’s will need to be signed
Sector Investments
between concerned stakeholders

Cost-recovery
Ensure cost recovery for IPP investors through an independent body.
assurances

All key principles are adhered (e.g. transparent, competitiveness, and no conflict
Governance
of interest, etc.), the Boards/IPP office representation need to be ‘Neutral’
 15 High Annual GHI Potential Cities (kWh/m2/year)
Note:
1.Area I (High) ;≥ 2,400 kWh/m2/year
2.Area II (Medium); ≥ 2,200 to 2,399 kWh/m2/year SHAQRA (Area II)
Average GHI: 2,245 kWh/m2/year
Peak Load: 2.5 MW
11th

RIYADH R. Station (Area II)

Average GHI: 2,256 kWh/m2/year
Peak Load: 10,819 MW
10th

TABUK (Area II) RIYADH KA Care City (Area II)

Average GHI: 2,237 kWh/m2/year Average GHI: 2,307 kWh/m2/year
Peak Load; 975 MW Peak Load: 10,819 MW
13th 6th

Timaa (Area II) AL-DAWADMI (Area II)

Average GHI: 2,292 kWh/m2/year Average GHI: 2,285 kWh/m2/year
Peak Load: 1,217 MW Peak Load: MW
8th 9th

MADINAH Taibah (Area II) LAYLA Aflaaj (Area II)

Average GHI: 2,234 kWh/m2/year Average GHI: 2,336 kWh/m2/year
Peak Load: 263 MW Peak Load: 110 MW
15th 4th

TAIF (Area II) WADI ADDASIR (Area II)

Average GHI: 2,321 kWh/m2/year Average GHI: 2,336 kWh/m2/year
Peak Load: 100 MW Peak Load: 316 MW
5th 3rd

RANIA (Area II) AL BAHA (Area II) AFIF (Area II) NAJRAN (Area I) SHARURAH (Area I)
Average GHI: 2,234 kWh/m2/year Average GHI: 2,237 kWh/m2/year Average GHI: 2,292 kWh/m2/year Average GHI: 2,438 kWh/m2/year Average GHI: 2,424 kWh/m2/year
Peak Load: 89 MW Peak Load: 52.5 MW Peak Load: MW Peak Load: 483 MW Peak Load: 126 MW
14th 12th 7th 1st 2nd
 15 High Wind Potential Areas of Saudi Arabia
15 13 Near Bni Saad
Al Bad’ Area II : 200 km2
Area II : 50 km2 Wind Speed; 7.7 – 8.2 m/s
Wind Speed; 7.7– 8.3 m/s Esti. Potential; 800 MW
1 Esti. Potential; 200 MW

14 Near Shigry
Area II : 100 km2 Near Sehat
Wind Speed; 7.8– 8.1 m/s Area II : 100 km2
Esti. Potential; 400 MW Wind Speed; 7.9 – 8.2 m/s
Esti. Potential; 400 MW
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Aqaba
Area I: 500 km2
Wind Speed; 9.5–12 m/s 11 Bil Haris
Esti. Potential; 2,000 MW
Area II : 100 km2
Wind Speed; 7.7 – 8.1 m/s
Esti. Potential; 400 MW
2

10 Alkaleba Baha
Area II : 150 km2
Wind Speed; 7.7 – 8.3 m/s
Near Sharmaa Esti. Potential; 600 MW
Area II: 400 km2
Wind Speed; 8 – 9 m/s
Esti. Potential; 1,600 MW
9 Shaib Al Arar
Area II: 100 km2
Wind Speed; 7.7 – 8.5 m/s
3 Esti. Potential; 400 MW

Al Baha
Area II : 70 km2
Alkhuraybah Wind Speed; 7.7 – 8.1 m/s
Area II: 200 km2 Esti. Potential; 250 MW
Wind Speed; 7.8 – 8.7 m/s
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Esti. Potential; 800 MW

Alshadakh Near Abshakeyr Halaba Aseer Bani Amr

Area II : 225 km2 Area II: 325 km2 Area II : 150 km2 Area II : 100 km2
Wind Speed; 7.8– 8.3 m/s Wind Speed; 7.6– 8.1 m/s Wind Speed; 7.8 – 8.2 m/s Wind Speed; 7.9 – 8.3 m/s
Esti. Potential; 850 MW Esti. Potential; 1,300 MW Esti. Potential; 600 MW Esti. Potential; 400 MW
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